Luxury home sales that were not landed amounted to $1.1 billion in the first quarter of 2018 which is an increase of 23% decrease from $1.4 billion that was racked by 2H2022, as per the research report of Knight Frank. The total number of homes of luxury that were not landed were sold during the first quarter this year. That’s which is less that the 164 transactions that were recorded in 2H2022.
Grand Dunman showroom had the most successful launch in over two years, surpassing the previous record-holder, Normanton Park.
Knight Frank attributes the lower volume of sales to “a condition of stagnation” mostly due to the introduction of fresh cooling measures that took effect on April 27 including the doubled amount of buyer’s stamp duty for foreigners of 30% to 60%% and 60%.
Despite the smaller volume of sales however, the median unit cost for prime homes without land experienced an 4.6% increase to $2,580 per square foot during the first half of 2018, compared to $2,464 per square foot in 2H2022.
Knight Frank highlights that of the 126 luxury condominiums sold in the first half of 2018 48 of them were located within District 4 of which 31 were located in Sentosa. “Interestingly the non-landed properties located in Sentosa were gaining traction, as a result from the spillover demand for properties in the principal districts on the main island as the amount of buyers increased, outweighing the small supply of homes that are available for sale in the most sought-after areas,” the report adds.
The demand for unfinished homes was apparent, with the super-luxury condominium Les Maisons Nassim being among the top two luxury residential non-landed transactions in the first half of 2023. A 8,633 sq ft apartment located at Les Maisons Nassim fetched $45 million ($5,213 per sq ft) in May. Similarly, the 6,286 sq ft apartment was purchased to a buyer for $36 million ($5,727 per square foot) at the end of February.
This month, EdgeProp Singapore announced the selling of the two units of Les Maisons Nassim, after a 6,092 sq feet unit was sold for $30.77 million ($5,050 per square foot) and an area of 6,179 square feet was purchased at $32.75 million ($5,300 per square foot) in accordance with caveats filed on June 27.
For the residential market that is landed the latest estimates from URA published on the 3rd of July revealed that the cost of homes landed were up 0.1% q-o-q in 2Q023 and brought the overall increase in the cost of homes landed to 6% in the first quarter in the calendar year.
As per Knight Frank, 257 landed homes valued at $2.7 billion were sold in the 1H2023 period. By contrast 284 landed properties valued at $2.7 billion sold during 1H2023. Prices for unit land rose 9.9% to $1,996 psf in 1H2023, up from $1,817 per square foot in 2H2022.
“In 1H2023, land homes sales continued to rise despite the volatility of the economy due to the fact that wealthy buyers and a new generation of young high-net-worths were drawn by the exclusiveness of exclusive houses,” the report states.
Within the Good Class Bungalow (GCB) segment, the total value of transactions was up 2.4% to $424.3 million in 1H2023, despite a decline in homes that were sold between to 10 GCBs in 2H2022 to 8 GCBs during 1H2023. Prices for unit land rose from $2,108 per square foot in 2H2022 and increased to $2,952 per square foot in 1H2023, establishing the new benchmark for land prices in the sector, Knight Frank highlights.
Concerning market outlook, Knight Frank points out that for prime non-landed homes and a decrease in foreign homebuyer participation following cooling measures will be the main reason for a slowing market until the end of 2023. The actions have also led to certain sellers pulling the properties off the marketplace while the demand from wealthy locals, naturalised and permanent residents is still.
In the landed sector, Knight Frank expects prices to increase in “a regular manner” in 2H2023, supported by the fact that there are more buyers than sellers.